Political News and Commentary from the Right

The White House is considering a new policy that would give an advantage in bids for billions in government contracts to companies that pay workers “living wages” and offer generous benefits.

WND has learned the “living wage” campaign has long been pushed by the radical Association of Community Organizations for Reform Now, or ACORN, and was largely initiated on a local level in the 1990s with the help of a socialist party of which evidence suggests Barack Obama was a member.

Critics warn a living wage advantage for more than $500 billion in government contracts could harm small companies, with case studies showing cities that enacted similar policies in the 1990s faced major financial losses. Business groups who oppose the plan say also it would increase government procurement costs.

The Associated Press obtained documents outlining the White House plan. The documents reportedly show the government would examine the wages and benefits – such as health insurance, retirement benefits and paid leave – a firm pays its employees as a factor in the process of awarding government contracts. Another factor would be whether a contract bidder is a repeat violator of labor and employment laws.

A Labor Department compliance office would compile a score on contract bidders based on the criteria and then determine which companies would get government contracts.

Writing about a similar policy that was being considered in Chicago in 2003, Steven Malanga of the City Journal stated the movement “sneaks socialism into cities.”

The so-called “Great Recession” has left Americans depending on the government dole like never before.

Without record levels of welfare, unemployment and other government benefits as well as tax cuts last year, the income of U.S. households would have plunged by an astonishing $723 billion — more than four times the record $167 billion drop reported last month by the Commerce Department.

Moreover, for the first time since the Great Depression, Americans took more aid from the government than they paid in taxes.

The figures show the devastating results of the massive job losses last year and indicate that the economic recovery that began last summer is tenuous and has a long way to go before many Americans resume life as normal, analysts said.

Economic growth typically depends on consumer spending, which is fed by wages, rents, interest and other forms of income. But the tentative revival of consumer spending in the second half of last year appears to have been fed largely by an extraordinary flood of government spending, as growth in other kinds of income has disappeared.

“Governmental support was critical in keeping the economy, particularly consumer spending, from completely collapsing during the crisis,” said Harm Bandholz, an economist at Unicredit Markets. He said he is concerned that so much of the economic rebound is a result of government spending rather than a revival of private income and jobs. That situation is unsustainable, he said, because the government has had to borrow massively to prop up the economy and cannot continue that binge for long.